We find that the sunk entry cost estimated in a model with the necessary convex factor adjustment costs are about 50 percent smaller than they are in a model without other costs of adjustment.

We explore the quantitative importance of pricing complementarities in the context of a menu cost model of price adjustment. Using super-market scanner data, we document new evidence on the co-movement of prices and market shares at the product level, suggesting that changes in prices and market...

Our new paper takes the same model to European data. First, we apply the methodology of Shimer ("Reassessing the Ins and Outs of Unemployment", mimeo, 2005) to calculate time series for hiring and separation probabilities in a set of European countries that have data on short-term and long-term...

uninsurable wage risk, insurable wage risk, and measurement error.

on how the main transition features, such as the pace of productivity convergence, timing and degree of trade and financial openness, affect convergence patterns.

Over the last fifteen years, emerging economies have been exposed to severe episodes of financial crises. In the mean time, an increasing share of investments is delegated to mutual funds. In this paper, we propose a small open-economy model where international investors hire fund managers to...

Life-cycle saving profiles show striking differences across countries. At all ages, saving as a percentage of disposable income is higher in Italy than in the United States. The saving profile is also much flatter. This paper focuses on the effect of differences in credit market development on...

We develop a multi-sector general equilibrium model in which productivity growth is driven by the production of sector-specific knowledge. In the model, we find that long run differences in total factor productivity growth across sectors are independent of the parameters of the knowledge...

As such, this represents a DSGE framework that can be used to analyze the effects of macroeconomic shocks, as well as systematic and unsystematic monetary policy on the yield curve.

accounts for a significant part of this moderation.